Firstly, are you supposed to pay for Revenue Tax?
The solution is dependent upon the year. For your income for the year 2011-12 (1st April, 2011 to 31st March, 2012), you will have to spend duty if
you’re a resident person with a taxable money greater than Rs. 1,80,00
you’re a resident woman with a taxable revenue of more than Rs. 1,90,000
you’re a resident senior citizen (age 60+) with a taxable income greater than Rs. 2,50,00
you’re a resident really senior citizen (age 80+) with a taxable money greater than Rs. 5,00,000
Just how much tax am I supposed to pay for?
You must have heard about’Income Tax Slabs ‘. For a resident male, the slabs for the season 2011-12 are
Money Slab – 0 to 1,80,000
Charge – 0%
Money Piece – 1,80,001 to 5,00,000
Charge – 10%
Income Slab – 5,00,001 to 8,00,000
Rate – 20%
Income Slab – over 8,00,000
Rate – 30%
Which means if your revenue is less than 1,80,000 you do not have to pay tax.
If your income is, claim, Rs. 2,30,000, you have to cover at 10% on the quantity by which it meets Rs. 1,80,000. In cases like this your duty liability would be (2,30,000 – 1,80,000) *.10
And if your income is, state, Rs. 6,00,000, you’ve to pay for tax on Rs. 3,20,000 ( 5,00,000 – 1,80,000 ) at 10%, and on Rs. 1,00,000 ( 6,00,000 – 5,00,000 ) at 20%.
So, meaning each year I have to visit the Income Tax Team and spend it?
Most likely, no. To make things simple on your own end, the Office makes your company do the same. Your boss can deduct it from your own wage and spend it for you. online income tax return is called TDS – Duty Deducted at Source.
What’s this Sort 16?
How have you any idea if your employer is spending your tax on time? and what is the quantity?
Your employer will provide you with a Form 16 by the end of a year. That kind 16 has details about the pay he has compensated for your requirements, the duty he’s subtracted on it, and compensated to the Income Duty Department.
What is Improve Duty / Self-Assessment Duty?
Your boss will take tax on your own income income and spend it to the Revenue Tax Department, but what when you have revenue from different sources as well?
Claim, you bought a bit of land and created a significant gain on it. You now have to pay for duty on this profit. Unfortunately, your company won’t spend it. You will have to do it.
Take still another case. Your company did not take tax on your own salary. He’ll experience penalties from the Revenue Duty Division, but how about you? You will now you have to pay for it to the Income Tax Division directly. It is a unusual case.
This really is called Improve Tax / Self-Assessment Duty
Is there any difference between the above two?
If you pay it all through the season, i.e., between 1st April, 2011 and 31st March, 2012 (for 2011-12) it is known as Advance Tax.
If, while organizing your duty get back, you realize that you however have to pay duty, and pay it therefore, it is named Self-Assessment Tax. Ergo Self-Assessment Duty is compensated following 31st March, 2012.
What’re money duty deductions?
Deductions are specific tax advantages you could be allowed to avail. If your income is Rs. 4,00,000, and you’re allowed to deductions of Rs. 1,00,000, you will simply spend tax on Rs. 3,00,000 at the slab rates.
There are numerous deductions. Case:
Premium paid on a Living Insurance Plan
Housing Loan Repaid
Volume deposited in a PPF (Public Provident Fund) Bill
Certain Good Resources ordered
Okay, therefore my employer gives tax on my behalf. So, my job is performed? I don’t have to do any such thing, proper?
Perhaps not really. You have to record an revenue duty reunite with the Income Duty Department. A return is nothing but a questionnaire that claims the money you have acquired throughout the year, the duty you were supposed to pay on, that duty you really paid, the huge benefits you availed, etc…